October 30, 2016 admin

Land (Auto Business Only)

Assets

LAND (AUTO BUSINESS ONLY) ASSET ACCOUNT
1700

ACCOUNT EXPLANATION
Cost of land purchased for use in the automobile business. Includes acquisition fees and site preparation costs.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Purchase of land CD
    Land (Auto Business Only) 1700
      Cash in Bank—General 1001
             
  Legal fees paid in connection with title to land CD
    Land (Auto Business Only) 1700
      Cash in Bank—General 1001
             
   Sale of land for cash at a gain CR
    Cash in Bank—General 1001
      Land (Auto Business Only) 1700
      Gain or Loss—Sale of Fixed Assets & Securities     9250
COMMENTS
  • Land not used in the automobile business should be included in Account 1830, Other Assets.
  • A lump sum purchase of land and buildings should be distributed to the appropriate asset accounts on the basis of relative fair market values. This may be accomplished through the use of independent appraisals, assessed valuations for property tax purposes, or other equitable means.